With China now the largest economy in the world (on a PPP measure1) and the primary engine of global growth, investors need to think hard about how to gain exposure within global portfolios. The impact of Chinese policy decisions reverberate around the world, whether those are purely domestic or international in scope.
The delta variant and inflation have dominated the news throughout 2021, and July has been no different. As some countries remove their covid restrictions other nations, particularly across Asia, are seeing rising cases and fresh lockdown measures. Inflation has continued to be high across developed countries and central banks have provided more suggestions as to when stimulus may be tapered.
This Sunday, President Sebastián Piñera announced a project for the third withdrawal of 10% of pension funds, this in response to the proposal approved last week in Congress. This initiative will be sent to Congress on Monday, so that it can begin its discussion with great urgency.This project, unlike the one approved by the parliamentarians, considers a subsequent recovery of funds, in addition to a bonus for those who do not have a balance in their pension savings.
It appears that inflation, rather than Covid-19, has become investors’ main concern.
Consequently, in the US, UK and even Germany, bond yields have risen to where they were in January 2020 and the direction of travel has been similar across all developed markets. But that is where the similarity ends. The US 10-year Treasury now yields 1.7% whereas the UK 10-year Gilt yields less than half that. The German bond is still in negative territory, yielding -0.3%.
Chile’s currency firmed against a steady dollar on Monday on the country’s plans to gradually relax lockdown restrictions, while Mexico’s peso extended declines to a third day on declining oil prices and rising number of COVID-19 cases there. Chile’s peso CLP= rose as much as 0.6% after government officials presented the plan on Sunday as …
* MSCI ex-Japan rises, all major Asian indexes in black * Shanghai copper at 6-month highs on supply fears * Investor focus on U.S. employment data due later in the day * Currencies tread water By Swati Pandey and Imani Moise SYDNEY/NEW YORK, July 2 (Reuters) – Asian stocks hovered near four-month highs on Thursday …
GLOBAL MARKETS-Asian stocks near 4-month highs on vaccine hopes Read More »
* S&P 500 futures erase early gains but second wave fears persist * Gold near 7-1/2-year peak touched last month * Hong Kong in focus after China reveals details of security law * Asian stock markets: tmsnrt.rs/2zpUAr4 By Hideyuki Sano and Kane Wu U.S. stock futures recouped losses on Monday but Asian stocks wobbled as …
GLOBAL MARKETS-Stocks try to shake off second wave virus fears Read More »
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Overnight Asia US stock futures edged up and European contracts retreated as investors mulled how much further to take the rally in global equities that’s been powered by reopening economies and reduced Coronavirus infection rates. Asian stocks climbed on Monday after Friday’s US jobs report smashed economists’ expectations, bolstered hopes for a quick economic rebound and …
Investor Focus on Federal Reserve’s Policy Meeting this Week Read More »
US markets Blowout US jobs numbers Friday gave bulls license to continue the risk-on rally that has propelled equities higher since March. The Dow Jones industrial index rose 3.2 percent; the S&P 500 gained 2.6 percent, and the NASDAQ rose 2.1 percent. In very unexpected and positive results, nonfarm payrolls shot 2.509 million higher in …
Global shares: US, Europe surge on US employment surprise; Asia firms Read More »
